Semirara drawing interest as coal reserve auction looms

THE Department of Energy (DoE) said interest is building in the looming auction for coal reserves, particularly in the area deemed likely to be most productive — Semirara Island.

“Maybe not all of those (sites) will have takers, but I’m sure the bigger ones that are more commercially interesting will be up for grabs,” Energy Secretary Sharon S. Garin said on Tuesday on the sidelines of the ASEAN Editors and Economic Opinion Leaders Forum.

The DoE is set to launch a bid round on Feb. 27, Friday, for sites with confirmed coal reserves, including the area operated by Semirara Mining and Power Corp. (SMPC).

Three sites will be offered: 10 blocks in Semirara Island in Caluya, Antique; five blocks across the municipalities of Benito Soliven, Naguilian, and Cauayan, Isabela; and three blocks in Amulung and Iguig, Cagayan province.

The coal blocks on Semirara Island are currently controlled by SMPC, the Philippines’ largest coal producer.

The contract for Semirara is set to expire by July 2027. It was offered for auction following a legal opinion that the contract cannot be renewed.

Manila Electric Co. (Meralco) expressed interest to participate in the auction through its power generation arm, Meralco PowerGen Corp., which operates thermal assets.

Aside from Semirara, Ms. Garin does not expect heightened interest in the remaining areas, noting that coal is considered a “dirty fuel” which the Philippines is seeking to shift away from.

Asked if state-run Philippine National Oil Co. (PNOC), through its oil, gas, and coal subsidiary, will be allowed to join, Ms. Garin said she is not encouraging it, to give way to the private sector.

“Paunahin muna ’yung private (Give the private sector first crack at it) rather than bringing in PNOC. Later PNOC can come in as a partner or in any form but I do prefer that it be private,” Ms. Garin said.

Interested parties will have 60 calendar days to submit their application documents. Opening of applications will be held on deadline day.

The DoE has said that the auction hopes to ensure “the orderly and responsible development and production of indigenous coal resources, while maintaining strict safeguards for public safety, environmental protection, and host-community welfare.” — Sheldeen Joy Talavera